Aircraft engine maker Rolls-Royce has warned that it will experience a "pause" in profits and revenue growth this year, sending its share price plunging.
The group said in a results statement on Thursday that its performance was expected to be hit by the combined impact of military budget cuts and the completion of some major export programs.
"In 2014, we expect a pause in our revenue and profit growth, reflecting offsetting trends across the business," said chief executive John Rishton, as the company's 2013 profits also tumbled 41 per cent.
"This is a pause, not a change in direction, and growth will resume in 2015."
"Cash flow is expected to be broadly similar to 2013. Our record order book underpins our confidence in the long-term growth of our business."
Thursday's grim news sent Rolls-Royce shares diving 11.49 per cent to 1,071 pence in morning deals on London's FTSE 100 index of top shares, which was down 0.46 per cent at 6,644.46 points.
